Savarino Companies, one of Western New York’s largest construction companies, has announced that it’s shutting down.
After working on about 100 projects in Western New York over 23 years, the contractor said in a statement that the main reasons for closing are a court battle with the NYS Dormitory Authority (DASNY) and failure to secure new bonds.
“The primary factors governing the firm’s decision are ongoing and increasing costs related to a project the company’s surety was forced to complete at Alfred State College, a recent termination of work and the company’s inability to obtain surety bonding or acceptance of alternative performance guaranties for $110 million of 2023 work which the company would otherwise have had underway at this time,” the statement reads. “Without that work, it would not be possible for the company to operate profitably.”
The statement goes on to say Savarino Companies, LLC “is actively working to achieve the best outcomes for its employees, clients and vendors.
“The firm is working with its clients and in some cases it’s surety to complete work on active projects and where needed is making arrangements with replacement contractors for upcoming work the company was slated to perform.
The status of several initiatives and development projects that Savarino Companies was affiliated with has yet to be determined, according to the company.
Savarino had a contract as a general contractor to DASNY to perform construction of a student housing project at the SUNY College of Technology at Alfred for a project known as MacKenzie Hall Phase III Renovation and Associated Asbestos Abatement.
“By letter dated November 19, 2021, DASNY terminated Savarino, purportedly for cause. Savarino has objected to its termination and has claimed that DASNY has breached the contract,” the company said in an update.
“Savarino claims that it has been severely impacted by DASNY’s actions on this Project. Savarino will be seeking damages from DASNY in the currently pending action. As set forth in the attachment, Savarino’s damages are currently estimated to be $3,310,282.82 all based on the increased costs that Savarino incurred that were caused by DASNY’s actions.”
The company updated the project in a statement.